2014 (8) TMI 151

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.... judgment of CESTAT dated 20/06/2013 raising following questions for our consideration:            "(a) Whether in the facts and circumstances of the case, the Tribunal has committed substantial error of law in quashing the penalty imposed upon the respondent by application of section 73(3) of the Finance Act, 1994?     &n....

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....nt - assessee by the Tribunal, CIT (Appeals) had ruled partially in favour of the Tribunal upon which, the assessee had approached the Tribunal. The Tribunal deleted the penalty applying Section 73(3) of the Finance Act, 1994 and following the decision of the Karnataka High Court in the case of C.C.E. & S.T. v. ADECCO Flexione Workforce Solutions Ltd. reported in 2012 (26) S.T.R. 3 (Kar.). 3. T....

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....sp;  (b) collusion; or       (c) wilful mis-statement; or       (d) suppression of facts; or      (e) contravention of any of the provisions of this Chapter or of the rules made thereunder with intent to evade payment of service ta." 5. It is true that as per Sub-section (4), penalty may still attach if there is....

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....gh Court in Adecco Flexione Workforce Solution Ltd. (supra), Karnataka and in CST, Bangalore v. Ahead Info Technologies India (P.) Ltd. 2012 (260) STR J25 (Kar.). In these pronouncements, the Karnataka High Court enunciated the principle that where an assessee has paid both the service ax and interest before issuance of a show cause notice under the Act, sub-section 3 of section 73 of the Act, pro....